Electricity tariff: NERC confirms increase

Advertisements
Advertisements
Advertisements
Advertisements
Advertisements
Advertisements
Advertisements
Advertisements
Advertisements
Advertisements

SHARE THIS

Advertisements

The Nigerian Electricity Regulatory Commission, NERC, has confirmed relative increases in electricity tariff regime across Nigeria’s ten electricity distribution companies with adjustment ranging from 5 to 12 percent.

Advertisements

This much the commission has confirmed, Wednesday night, according to its new regulations posted on its official website, saying that the adjustment to the Multi-Year Tariff Order (MYTO) took effect from February 1, 2022.

Advertisements


According to NERC, the adjustment was to “ensure that tariffs payable by consumers are commensurate with and aligned with the quality and availability of power supply committed to customer clusters” by the DisCos, adding that “the adjustment would ensure that prices charged by the DisCos are fair to customers and are sufficient to allow the DisCos to recover the efficient cost of operation, including a reasonable return on the capital invested in the business.”

“The adjustment would also ensure sustained improvement in reliability of supply in line with the DisCos capital expenditure (CAPEX) proposals and performance in improvement plan,” the commission further stated.

Advertisements

Additional checks on the Order for individual DisCos showed that for Abuja DisCo, non-maximum demand (Non-MD) customers in Band A (minimum of 20 hours supply per day) would be billed 8 percent higher, while maximum demand (MD) customers in the same band would be charged 1.04 percent lower.

Tariff for Non-MD in Band B (minimum of 16 hours per day), rose by 8.8 percent while it remained the same for MD customers in Band B. For Non-MD customers in B and C (minimum of 12 hours per day), tariff rose by 11 percent while MD customers would pay 7 percent extra.

Also, for Non-MD customers in B and D (minimum of 8 hours per day), tariff rose by 11.7 percent while those on MD would pay 6.8 percent more. For Non-MD customers in Band E (minimum of 4 hours per day), tariff rose by 12 percent while MD customers in the band would have a reduced tariff of 5.3 percent.

For the poorest of the poor consumers (Lifeline: R1) with energy consumption of not more than 50kWh per month, tariff remained frozen at N4.

With the adjustment, NERC has ordered the DisCos to pay 100 percent of invoices issued to them by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO), warning that DisCos shall “be liable to relevant penalties/sanctions for failure to meet the minimum remittance requirement in any payment circle under the terms of respective contracts with NBET, MO and the provisions of the Market Rules and Supplementary TEM (Transition Electricity Market) Order.”/SHARE THIS

  • Tags: NERC, Electricity tariff
Advertisements

Leave a Reply

Your email address will not be published. Required fields are marked *